New Trade Protectionism Response to COVID-19: An Investigation on Firm Export Performance in an Emerging Country

Abstract

Purpose - Given the significance of concerns raised about the global shift toward protectionism under trade policy uncertainty context, and echoed by requests to contribute to issues that concern a wider variety of stakeholders, this study aims to review new trade protection measures in response to the pandemic crisis and their effects on export performance from an emerging country’s exporters. Design/Methodology/Approach - Research data were gathered by surveying 613 export managers of different types of exporters in Vietnam from a list of exporters provided by Ministry of Industry and Trade, and then applied a regression model for analysis. Findings - The study demonstrated a negative relationship between firm export performance and six trade protectionism measures, including industrial subsidies, public-procurement restrictions, FDI restrictions, standards protectionism, green protectionism, and regional integration. Only restrictions on migrant workers had no appreciable impact on firm export performance. Additionally, only employee number, out of the three control factors, significantly and positively affected how well firms succeed in exporting. Research Implications - The study’s findings have significant ramifications and contributions to theory and practice in international trade for an emerging country to overcome new trade protectionism measures. To support firms in expanding export markets, the government of an emerging country should concentrate on establishing and developing policies to support exporters, especially small and medium enterprises. Firms should pursue a sustainable export strategy in light of the emergence of new trade protectionism in significant import markets.